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Sponsors
1 Co-sponsor
History
- Signed chap.218
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.370
- Substituted for A11239
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 58–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.795
Show 2 earlier actions
- Reported and committed to finance
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extends certain provisions relating to the powers of the state of New York mortgage agency
Assembly Floor Calendar · Sponsor Vito Lopez
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend chapter 915 of the laws of 1982 amending the public authorities law relating to the powers of the state of New York mortgage agency, in relation to the effective date thereof; and to amend the public authorities law, in relation to the powers of the state of New York mortgage agency
Purpose
This bill would (i) extend the authority of the State of New York Mortgage Agency ("SONYMA" or "the Agency") to purchase forward commitment mortgages and to issue new money tax-exempt bonds and new money taxable bonds, and (ii) increase the maximum amount of SONYMA' s authority to issue new money tax-exempt bonds.
Summary of provisions
Section 1 of the bill would extend SONYMA's authority to purchase forward commitment mortgages until July 16, 2011.
Read the full memo (784 words)
Section 2 of the bill would (i) extend SONYMA's authority to issue new money taxable and tax-exempt bonds until July 16, 2011; and (ii) increase SONYMA's tax-exempt bonding authority by $500 million to a maximum of $9.22 billion.
Section 3 of the bill provides for an immediate effective date.
Existing law
Under existing law, SONYMA's authority to purchase forward commitment mortgages and to issue new money taxable bonds is scheduled to sunset on July 16, 2010. SONYMA is currently authorized to issue up to $8.720 billion of new money tax-exempt bonds and up to $800 million of new money taxable bonds by July 16, 2010.
Legislative history
Similar bills have been enacted each year since before 2000 to increase SONYMA's tax exempt bonding authority and to extend by one year the sunset dates of SONYMA's authority to purchase forward commitment mortgages and to issue new money tax-exempt and taxable bonds. See Chapter 177 of the Laws of 2009; Chapter 148 of the Laws of 2008; Chapter 227 of the Laws of 2007; Chapter 138 of the Laws of 2006; Chapter 121 of the Laws of 2005; Chapter 147 of the Laws of 2004; Chapter 141 of the Laws of 2003; Chapter 103 of the Laws of 2002; Chapter 111 of the Laws of 2001; Chapter 132 of the Laws of 2000.
Statement in support
SONYMA's statutory authorizations to issue new money tax-exempt bonds and to purchase forward commitment mortgages are scheduled to sunset on July 16, 2010. SONYMA's statutory authorization to issue new money taxable bonds is also scheduled to sunset on July 16, 2010. This bill would extend the sunset dates for the issuance of new money tax-exempt bonds and new money taxable bonds, and for the purchase of forward commitment mortgages until July 16, 2011.
This bill would also increase the maximum amount of new money tax-exempt bonds which SONYMA is authorized to issue. The increase being requested is intended to address the borrowing needs of the
Agency in 2010 as a result of a new Federal program and to allow the Agency to issue bonds for student loan purposes.
The Agency, like most state housing finance agencies throughout the country, has been adversely impacted in its ability to continue to offer low interest rate fixed rate mortgage financing to eligible first-time homebuyers, due to the dramatic events in the financial markets during late 2008. In order to ameliorate this situation, the US Department of Treasury recently announced a program that will permit state housing agencies such as SONYMA to sell tax exempt bonds to Fannie Mae and Freddie Mac (the "GSEs"). The GSEs will securitize the bonds and simultaneously sell the securities to the Department of Treasury. The program will enable the Agency to lower its borrowing costs and as a result, the Agency will be able to once again offer its mortgages at attractive interest rates. The program runs through the end of 2010.
In early 2009, the Agency's statute was amended to modernize the Agency's authority to issue bonds to finance student loans. The Agency has completed its first bond sale, and expects to make the program a yearly one. The expectation is that the Agency would issue approximately $350 million in bonds per year, assuming continuing demand.
Given the Treasury Department program and the implementation of the student loan program, the Agency therefore expects a significant increase in demand. SONYMA's current authority to issue new money tax-exempt bonds and taxable bonds are insufficient to cover the current expected demand for mortgages and student loans in the next few years. This bill would increase SONYMA's authority to issue additional tax-exempt bonds and notes up to a total maximum amount of $9.22 billion, which will enable SONYMA to satisfy its expected mortgage and student loan demand.
Fiscal impact
None.
Effective date
This bill would become effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.